Senate Passes “No Tax on Tips Act” in Rare Unanimous Vote
Financial Relief for Service Workers
In a rare moment of bipartisan unity, the U.S. Senate has
unanimously passed the No Tax on Tips Act, introduced by Senator Ted Cruz.
The bill would make tips exempt from federal income tax,
directly benefiting workers such as servers, bartenders, and delivery drivers.
“This legislation will have a lasting impact on millions of
Americans by protecting the hard-earned dollars of blue-collar workers,” Cruz said.
Bipartisan Backing
Democratic Senator Jacky Rosen, co-sponsor of the bill, praised it for helping Nevada’s hospitality workers.
“Service workers form the backbone of our tourism economy,” she said. “This bill gives them the respect and support they deserve.”
How It Works
The measure would amend tax law so that tips remain reportable but untaxed, applying only to customer gratuities.
Supporters say it simplifies reporting and boosts take-home pay.
Next Steps
The bill now heads to the House of Representatives. Cruz noted, “Nothing’s perfect, but this is
a step toward putting money where it belongs — in the hands of workers.”
